13 Regulation EC 443/2009 EU new registrations, not homologations! CO 2 (g/km) Average CO target UE for new cars: 130 g/km Specific CO 2 emissions for each new passenger car = ,0457 x (M M o ) The regulation on CO 2 sets a penalty mechanism based on excess emission payments. If a manufacturer fails to meet its target in a given calendar year, it will be required to pay an excess emissions premium Car with 935 kg Average Mass 1372 kg Car with 2248 kg Mass (kg) (with driver) The premium will be calculated by multiplying the number of g CO 2 /km by which the manufacturer exceeded its target by the number of cars newly registered and by the excess emissions penalty for the year (up to 95 / exceed grams). 13

21 Spark Ignited Engine Technology and CO 2 Spark Ignited engines, despite their present drawbacks in terms of CO 2 emissions and fun-to-drive characteristics with respect to their Diesel counterpart, still offer two fundamental advantages : a robust and low-cost emission control technology (3-way catalyst). an intrinsic cost advantage with respect to Diesel, expected to further increase in the future. Spark Ignited engine technology will continue to be the major contributor to the CO 2 emissions reduction of the European vehicle fleet through : the continuous optimization of the new downsized / turbocharged engine platforms by means of advanced functionalities of the Valve Control coupled with Direct fuel Injection systems. the progressive exploitation of their intrinsic capability to burn low carbon content fuels ranging from Natural Gas to Hydrogen.

23 The Multiair Technology Multiair Electronic Valve Control system, based on the electro-hydraulic actuation technology, with total flexibility in the intake valve opening schedules. It allows a fast and precise air mass control on a cylinder-by-cylinder and stroke-bystroke basis. The Multiair system optimizes combustion parameters and reduces fuel consumption and emissions in all driving conditions by increasing at the same time the fun to drive performance of the vehicle.

32 Diesel Technology and CO 2 During the last decade the Common Rail Diesel engine deployment was the major contributor to the European fleet s CO 2 emissions reduction. However, Diesel technology will be strongly focused on the achievement of Euro 6 and post Euro 6 emission standards with the lowest possible cost and CO 2 emission penalties. Therefore, no substantial contribution can be expected from the Diesel technology towards a further reduction of the CO 2 emissions of the European fleet.

40 Liquid Biofuels: from first to second generation The worldwide consumption of the FIRST generation of LIQUID biofuels, based on vegetal oils and crops, is very limited (< 3%) due to the availability of raw materials being in conflict with the food sector Current development is focused on SECOND generation of LIQUID biofuels based on the conversion of BIOMASS coming from forestry residues, agricultural crops, wastes and manure that are not in competition with the food sector and widely available. Nevertheless, due to the high cost of production, DIESEL based on Fischer- Tropsch processes and BIOETHANOL derived from wood residues, will appear on the market at industrial scale not before

60 Towards powertrain electrification technical opportunities and sustainable solutions Current scenario is asking for enabling technologies and system to dramatically save energy, reduce CO 2 and local pollutant emissions. Powertrain electrification could play a significant role thanks to the kinetic energy recovery during deceleration phases and the progressive introduction of electrical assisted auxiliaries & systems. 60

66 Customer in the loop Fiat Group Automobiles in 2008 introduced a eco-technology called eco:drive to encourage environmental awareness of the driver Fiat eco:drive allows customers to collect driving data from their vehicle. These data are analyzed by specific algorithms in order to obtain personalized feedback on how to adapt driving style to achieve maximum fuel efficiency Following eco:drive advice, the customer is able to quantify the improvements on fuel consumption and CO 2 emissions deriving from the change of her/his driving style 66

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